Interesting article about Oil

wanghong

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; ]3 W8 Q# a. P& rBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
' g2 y" i8 c/ Ecompanies producing Jet fuels but Biofuels. Also no wonder if some of
! Y3 U& U3 s* dthese oil producer will go bankrupt or out of the business even if
, b; O+ {$ \) G* t/ \5 Fcrude prices improves. This implies also to good names such as Shell,
+ c3 a9 p1 e* XEXXON, BG, BP, Cheveron ....xyz.. oils
4 O. H& A  j3 i4 i5 M$ r
& |/ h% D' t" n3 r9 l! E) CRecently OPEC reduced crude oil production twice over just a few
$ ]0 A+ `$ f5 I& B  Y1 f1 w& `months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
* f- f" l# e4 ?4 a/ o9 ^least $50.00 per barrel. Today, oil price declined by a record amount.
& Q- ~+ O" i5 _- I# K. P9 N
8 i! O% w- ?# ]' o- Y- }/ t: P
/ H% q' v( P1 wThere are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
4 D! u- d+ v4 B7 E; n

1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


! R) T9 ]; C# @9 J/ {& i2. New natural gas has been found in Pennsylvania and West Virginia.
  s& d# d$ Z; q' k' g7 H) {& g2 aThis is the largest find in North America.
0 S: }! v: J7 ]

* B: G0 F, X3 e/ J0 g# a! w2 V3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
! I4 e0 g8 C$ T6 F& ?& y

4. Production of bio-fuels is beginning to reach critical mass. Bio
% ]6 S1 C. h4 c$ d8 ]9 o% Rfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

( O+ b9 }9 \6 x% e% c
, g5 w$ w3 s0 F5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
5 ~' \- z: I% ~: icattle, turkey and chicken processing plant will soon sell their fat
$ ?; b' F$ |) _to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


+ q: \) H2 o3 o* @1 ]$ Z! m6. There are 99 nuclear reactors in various stages of planning and
$ G1 k- V) a8 t5 B/ z/ ^$ z' {construction around the world at this time. Several hundred more are
  O0 J$ ]: l/ m3 ~8 Rexpected to be built in the future. Much of the energy they produce
4 {2 e+ L: N1 S3 X4 T: K, rwill replace oil.
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2 V, W6 L% M% A. m
7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
) U' V- v0 ^9 J6 O$ lare experiencing 20% to 25% better fuel econony with the new
equipment.

+ M' K2 j6 d$ y$ s) `
Airlines are flying airplanes with bio-fuel. They are finding the bio-
/ r) z$ x4 n' L- {' o, P2 {fuel is cleaner and performs better than jet fuel.
' ]3 U$ @! h: d4 Y2 q
$ ~7 |; p$ }  s# @. T1 B( @, i
" L& d2 z6 }" t/ P/ u: e2 Q4 ]8. Cities and counties throughout the US are selling the rights to
: m6 W; e' I% _7 G8 Kcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


# I2 a  o0 p( G' e( c! ^. ?9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.


0 `0 A: m3 r+ {" T7 s, \7 A" M( ~10. Solar, wind and ocean energy is displacing oil as an energy
. ]" x( g5 X  G* l9 Msource. Three new wind turbines are being erected every day in the US.

  O1 p5 U! T) E
1 Q4 ~, B+ m2 Q# |' ~Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
7 ~) ?  y& o; O+ u$ I+ Xto control oil prices.


' x8 p$ m" T2 ~2 i/ LWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
/ P4 H. \9 q* u8 s# J. YIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


) ?  p. [( P9 u4 a0 l. IThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only